Denny's to charge 5% 'Obamacare surcharge' and cut employee hours to deal with cost of legislation

Denny's to charge 5% 'Obamacare surcharge' and cut employee hours to deal with cost of legislation

President Obama's election victory ensured his Affordable Care Act would remain the centerpiece of his first term in power - but that has left some business owners baulking at the extra cost Obamcare will bring.

Florida based restaurant boss John Metz, who runs approximately 40 Denny's and owns the Hurricane Grill & Wings franchise has decided to offset that by adding a five percent surcharge to customers' bills and will reduce his employees' hours.

With Obamacare due to be fully implemented in January 2014, Metz has justified his move by claiming it is 'the only alternative. I've got to pass on the cost to the customer.'

The fast-food business owner is set to hold meetings at his restaurants in December where he will tell employees, 'that because of Obamacare, we are going to be cutting front-of-the-house employees to under 30 hours, effective immediately.'

sorry, but I see an 'obama surcharge' added onto the base cost of menu items, it's like hotel resort fees. I get fuckin pissed. Deceptive businesses who advertise a certain price and basically charge more because they can.

sorry, but I see an 'obama surcharge' added onto the base cost of menu items, it's like hotel resort fees. I get fuckin pissed. Deceptive businesses who advertise a certain price and basically charge more because they can.

Quoting: Cult of Personality

Ummm, Denny's is announcing the price increase. Give your patronage to business who pass the extra cost to their employees.

President Obama's election victory ensured his Affordable Care Act would remain the centerpiece of his first term in power - but that has left some business owners baulking at the extra cost Obamcare will bring.

Florida based restaurant boss John Metz, who runs approximately 40 Denny's and owns the Hurricane Grill & Wings franchise has decided to offset that by adding a five percent surcharge to customers' bills and will reduce his employees' hours.

With Obamacare due to be fully implemented in January 2014, Metz has justified his move by claiming it is 'the only alternative. I've got to pass on the cost to the customer.'

The fast-food business owner is set to hold meetings at his restaurants in December where he will tell employees, 'that because of Obamacare, we are going to be cutting front-of-the-house employees to under 30 hours, effective immediately.'

Jimmy John Liautuad, owner of sandwich chain Jimmy John’s, told Fox Business the other day that the cost of Obamacare’s health insurance mandate could tack an extra 50 cents on the price of a sandwich.

In order to survive, Jimmy John figures he’s going to have to reduce much of his staff to part-time workers to avoid paying the exhorbitant fines Obamacare will impose starting next year–by the President’s design, after the election.

“If you have 40 or 50 employees at a restaurant, and the penalty is $2,000, and you’re going to pay $80,000 or $100,000 penalty, there goes the profit in your restaurant [link to fosterfriess.com]

Since he is cutting his employees to under 30 hours he will not be required to pay the added benefits to his employees so there is NO JUSTIFICATION for him to charge a surcharge. He is just doing so as a retribution tool.

The only thing that will happen is people will STOP going to Dennys because it will be overpriced for what you get.

Since he is cutting his employees to under 30 hours he will not be required to pay the added benefits to his employees so there is NO JUSTIFICATION for him to charge a surcharge. He is just doing so as a retribution tool.

The only thing that will happen is people will STOP going to Dennys because it will be overpriced for what you get.

Quoting: Anonymous Coward 25148952

It doesn't say he's cutting all of his employees to 30 hours though, just front-of-house.

sorry, but I see an 'obama surcharge' added onto the base cost of menu items, it's like hotel resort fees. I get fuckin pissed. Deceptive businesses who advertise a certain price and basically charge more because they can.

Quoting: Cult of Personality

Same nonsense after San Francisco did the same thing. If you need to charge more, charge more. Guess what eventually the restaurants dropped the charge and simply put it in the prices.

I don't have any problem paying 5% more for a meal so the staff can have health care. Do have the problem with multi millionaires throwing a hissy fit about it.

The problem is that people will have even less to spend so patronize restaurants even less than before. You can't squeeze blood out of a turnip people.

I think there will be a big shake out of restaurants; about 40% will go out of business.

The only ones that will survive will offer outstanding service and quality for the money. Customers will be stingy with their money as they have less and less of it and will say goodbye to brand loyalty and spending frivolously.

Truly, the only reason that restaurants are doing the business that they are now in this economy is that most of the 20 something age range generation do not know how to cook.

It's a good thing places like Denny's and Papa John's have a base market of well-off Republicans who will pay extra to support this.

If their markets were lower income Obama supporters they might lose customers.

/sarcasm

Hosea 2:2 Plead with your mother, plead: for she is not my wife, neither am I her husband: let her therefore put away her whoredoms out of her sight, and her adulteries from between her breasts; 2:3 Lest I strip her naked, and set her as in the day that she was born, and make her as a wilderness, and set her like a dry land, and slay her with thirst.

It's an excuse to raise prices.If you cut hours under 30, then you don't pay insurance.

They are worse than pappa johns.

Quoting: Anonymous Coward 7061022

That's fine for you as a customer...not so fine if you are the employee having their hours cut.

Better he than me... that is a big part of what is wrong with our society today. Selfishness straight up.

Quoting: Real list

How can giving more than the actual price of a meal out of "gratuity" be classified as selfishness in any way shape or form? If you give a penny more than the listed price, it is still a gratuity. Albeit a shitty one.

I'm not advocating being a lousy tipper, but perhaps a 15% flat gratuity should be included in every restaurant price. Everyone is satisfied, and no more surprises when the bill comes.

It's an excuse to raise prices.If you cut hours under 30, then you don't pay insurance.

They are worse than pappa johns.

Quoting: Anonymous Coward 7061022

That's fine for you as a customer...not so fine if you are the employee having their hours cut.

Better he than me... that is a big part of what is wrong with our society today. Selfishness straight up.

Quoting: Real list

How can giving more than the actual price of a meal out of "gratuity" be classified as selfishness in any way shape or form? If you give a penny more than the listed price, it is still a gratuity. Albeit a shitty one.

I'm not advocating being a lousy tipper, but perhaps a 15% flat gratuity should be included in every restaurant price. Everyone is satisfied, and no more surprises when the bill comes.

Quoting: In-Situ

Can you even read?

The selfish part is choosing for the employees to take the hit in the form of reduction in hours to part time status rather than increasing the prices.